Orvana announces the completion of the acquisition of the Taguas property
Juan Gavidia, CEO of Orvana said, “The Company is pleased to officially add the Taguas property as a third potential transaction to target the growth of our mineral reserves and resources. Subject to the results of the last drilling program and the availability of funds, the Company plans to continue the development of Taguas by completing an infill drilling program to improve resources from those inferred to measured-indicated, and develop baseline studies. for a pre-feasibility study. This is a perfect addition to our platform. Our Spanish Orovalle mine now produces 55,000 ounces / year of gold and gold equivalent and our Bolivian storage project, EMIPA, will hopefully restart operations in 2022. “
The Taguas property was acquired from Compañía Minera Taguas SA. (the “SellerIn consideration for 100% of the Taguas property, Orvana granted an indivisible net smelter royalty equal to 2.5% on all future metal production from the property. The seller indirectly owns 51.9% of the shares issued and outstanding shares of Orvana, and is therefore a related party for the purposes of Multilateral Instrument 61-101 – Protection of Minority Holders of Securities in Special Transactions (“MI 61-101Orvana is exempt from the requirement to obtain a formal appraisal or approval from minority shareholders in connection with the acquisition of the Taguas property under sections 5.5 (a) and 5.7 (a), respectively, of MI 61-101, as neither the fair market value of the property nor the fair market value of the consideration for the property exceeds 25% of the market capitalization of the company as calculated in accordance with MI 61- 101. The company did not file a material change report on this acquisition more than 21 days before the planned completion of the transfer of ownership to Orvana Argentina, SA, as the date of finalization of the transfer could not be definitively confirmed only a short time ago, and the company wanted to complete the transfer on an expedited basis for good business reasons. The acquisition of Taguas was considered and unanimously approved by the company’s board of directors.
The Toronto Stock Exchange (“TSX”) has accepted the Acquisition, subject to receipt of copies of the signed agreements before the close of the business day following the closing of the Acquisition.
A drilling campaign to enlarge the mineral resource began in February 2021 and was completed in April 2021 with a total of 4,689 meters drilled. The distribution of meters drilled is shown in Figure 2 and is described as follows:
- 3,455.4 meters at Cerros Taguas to increase oxide resources (main objective of this campaign);
- 733.5 meters at Cerro Campamento in order to test the continuity of mineralized structures to the southwest; and 500 meters in CARDS targets 1 and 2 to explore the potential of the area.
Laboratory analyzes and evaluation of data collected during the drilling program are underway and should be completed by the end of May. A new mineral resource estimate is being updated in accordance with National Instrument 43-101 by Geosim Services Inc, an independent consulting firm, and is expected to be completed by the third quarter of fiscal 2021.
ABOUT ORVANA – Orvana is a multi-mining gold-copper-silver company. Orvana’s assets consist of the gold-copper-silver producing El Valle and Carlés mines in the north Spain, the Don Mario gold-silver property at Bolivia, currently in care and maintenance, and the Taguas property located at Argentina. Additional information is available on the Orvana website (www.orvana.com).
Cautionary Statements – Forward-Looking Information
Certain statements made herein constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws (“forward-looking statements”). Any statement that expresses or involves discussions regarding predictions, expectations, beliefs, plans, projections, goals, assumptions, potentials, future events or performance (often, but not always, using words or expressions such as “believes”, “expects”, “plans”, “estimates”, “intends” or “foresees” or indicating that certain actions, events or results “may”, “could”, “would”, “could”, “will” or “are intended for” are not statements of historical fact, but forward-looking statements.
The forward-looking statements contained in this document relate, among others, to: Orvana’s ability to improve its free cash flow; the potential to extend the mine life of El Valle and Don Mario beyond their current mine life estimates, including, but not limited to, in the case of Don Mario , treatment of mineral stocks and reprocessing of tailings; the timing of the completion of the evaluation of the laboratory analyzes and the preparation of an NI 43-101 report on Taguas; Orvana’s ability to optimize its assets to create shareholder value; the company’s ability to optimize productivity at Don Mario and El Valle; any measures taken by the Company to prevent and / or mitigate the impact of COVID-19 and other infectious diseases in or near the Company’s mines and support the sustainability of its activities, including through the development of plans for crisis management, increasing stock levels for key supplies, monitoring advice from the medical community and engaging with communities and local authorities; estimates of future production, operating costs and capital expenditures; mineral resource and reserve estimates; statements and information concerning future feasibility studies and their results; future transactions (including the completion of the Taguas acquisition and the subsequent results of any exploration work on Taguas); future prices of metals; the ability to achieve further growth and geographic diversification; future financial performance, including the ability to increase cash flow and earnings; future financing needs; and mining development plans. Forward-looking statements are necessarily based on a number of estimates and assumptions which, although considered reasonable by the Company at the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company’s estimates and assumptions contained or incorporated by reference in this press release, which may prove to be incorrect, include, without limitation, the various assumptions set forth herein and in the MD&A and the Orvana’s most recent annual management report. Information form relating to the last completed financial year of the Company (the “Company Information”) or as otherwise expressly incorporated herein by reference as well as: there are no significant disruptions affecting operations, whatsoever either due to work interruptions, power cuts, power outages, damage to equipment or otherwise; authorization, development, operation, expansion and acquisitions at El Valle and Don Mario in accordance with the current expectations of the company; political developments in any jurisdiction in which the company operates consistent with its current expectations; certain price assumptions for gold, copper and silver; the prices of major supplies are roughly in line with current levels; production and cost of sales forecasts in line with expectations; the accuracy of current estimates of the Company’s mineral reserves and mineral resources; and labor and material costs are increasing on a basis in line with Orvana’s current expectations.
A variety of risks, uncertainties and inherent factors, many of which are beyond the control of the Company, affect the operations, performance and results of the Company and its businesses, and could cause events or actual results differ materially from estimated or anticipated events or results. expressed or implied by forward-looking statements. Some of these risks, uncertainties and factors include the effect of COVID-19 and other infectious diseases on the Company’s operations, workforce and supply chain, fluctuations in the price of gold , silver and copper; the need to recalculate resource estimates based on actual production experience; inability to achieve production estimates; variations in the grade of the ore mined; variations in the cost of operations; the availability of qualified personnel; the company’s ability to obtain and retain all necessary regulatory approvals and licenses; the company’s ability to use cyanide in its mining operations; risks generally associated with mineral exploration and development, including the Company’s ability to continue to operate El Valle and / or Don Mario and / or the ability to resume long-term operations at the Carlés mine; the Company’s ability to successfully implement a sulfurization circuit and ancillary facilities to process existing oxide stocks at Don Mario; the Company’s ability to acquire and develop mining properties and to successfully integrate such acquisitions; the company’s ability to execute its strategy; the Company’s ability to obtain financing as required on terms acceptable to the Company; challenges to the company’s interests in its property and mineral rights; current, ongoing and proposed legislative or regulatory developments or changes in political, social or economic conditions in the countries in which the Company operates; general economic conditions around the world; and the risks identified in the Company Disclosures. This list is not exhaustive of the factors that could influence the forward-looking statements of the company and reference should also be made to the Disclosures for a description of additional risk factors.
Forward-looking statements made herein regarding the anticipated development and exploration of the Company’s mining projects are intended to provide an overview of management’s expectations with respect to certain future activities of the Company and may not be appropriate for others. purposes.
Forward-looking statements are based on current plans, estimates, projections, beliefs and opinions of management and, except as required by law, the Company undertakes no obligation to update forward-looking statements if related assumptions. at these plans, estimates, projections, beliefs and opinions change. Readers are cautioned not to place undue reliance on forward-looking statements.
SOURCE Orvana Minerals Corp.